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Global fishiness How can Wal-Mart sell Chilean salmon for $4.84 a pound? An excerpt from "The Wal-Mart Effect."
  • Global consumers

    And he thinks if American consumers understand what's required to deliver salmon at $4.84 a pound, they won't think the price is worth the cost.

    The statement quoted above is mostly true, and mostly false. Obviously if everyone understood they were shooting their children in the head, they would put down the gun. This is true. But will most ever come to see the long view of it this way in reality?

    The evidence seems to incidate that in fact consumers will en masse take the lower prices and not care about the details. They have enough stress in their lives without worrying about the copper mines of Chile of the last several decades, or the salmon mines for the next several. Wal-Mart, and so many other businesses, are in fact built on this imperative. It's naïve to think otherwise.

    A second problem with the sadly idealistic statement is that while cost analysis of long-term sustainable sources, and the potential financial impact of a public scandal, may be important they are by no means the only facets to be considered by a multinational corporation. For example, perhaps they decide it is cheaper to launch a disinformation campaign (as we have seen from monster corporations, time and time again) to combat potential scandal, rather than eliminating the source of the scandal? This has been somewhat effective in the past. Also, perhaps their analysis finds that it does not matter if their Chilean sources dry up, they may except other sources (or other products) eventually to replace these. There are many more options.

    I was heartened by the optimism of this article, and surely it would be an amazing thing if those predictions became reality. I would love to be wrong in my corporate pesimism.

    It is a well known given that corporate planners are notoriously and purposefully short sighted. While long term planning is important, it is not as important as the next year end financials in most cases: the share holders want a return on their investment, now.

    I wish good luck to Wal-Mart on this. We all may be counting on it.

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